Trex Company, Inc. (NYSE:TREX) Given Average Recommendation of “Hold” by Analysts

Shares of Trex Company, Inc. (NYSE:TREX) have received an average recommendation of “Hold” from the twenty-four brokerages that are currently covering the company, Marketbeat.com reports. Four investment analysts have rated the stock with a sell recommendation, nine have given a hold recommendation, ten have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have issued a report on the stock in the last year is $47.25.

Several analysts have weighed in on TREX shares. Deutsche Bank Aktiengesellschaft cut Trex from a “buy” rating to a “hold” rating and set a $40.00 price objective for the company. in a report on Wednesday, November 5th. Zacks Research lowered shares of Trex from a “hold” rating to a “strong sell” rating in a report on Monday, October 13th. Zelman & Associates lowered shares of Trex from an “outperform” rating to a “neutral” rating in a report on Wednesday, November 5th. JPMorgan Chase & Co. dropped their target price on shares of Trex from $71.00 to $40.00 and set a “neutral” rating for the company in a research report on Thursday, November 6th. Finally, The Goldman Sachs Group set a $54.00 price target on Trex and gave the stock a “buy” rating in a research report on Tuesday, December 16th.

Trex Price Performance

Shares of Trex stock opened at $42.99 on Thursday. The firm has a 50 day simple moving average of $34.95 and a 200 day simple moving average of $49.79. Trex has a fifty-two week low of $29.77 and a fifty-two week high of $75.55. The firm has a market cap of $4.61 billion, a P/E ratio of 23.36 and a beta of 1.55.

Trex (NYSE:TREX) last released its earnings results on Tuesday, November 4th. The construction company reported $0.51 EPS for the quarter, missing the consensus estimate of $0.57 by ($0.06). Trex had a net margin of 16.76% and a return on equity of 21.90%. The firm had revenue of $285.35 million during the quarter, compared to analyst estimates of $301.74 million. During the same period last year, the business posted $0.37 earnings per share. The firm’s quarterly revenue was up 22.1% on a year-over-year basis. On average, sell-side analysts expect that Trex will post 2.04 EPS for the current year.

Insider Activity

In related news, CFO Prithvi Gandhi purchased 15,000 shares of the stock in a transaction dated Friday, November 14th. The stock was bought at an average cost of $31.92 per share, with a total value of $478,800.00. Following the purchase, the chief financial officer directly owned 30,664 shares in the company, valued at $978,794.88. The trade was a 95.76% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders own 0.71% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC raised its holdings in Trex by 3.2% in the first quarter. AQR Capital Management LLC now owns 5,642 shares of the construction company’s stock worth $320,000 after purchasing an additional 177 shares during the period. Goldman Sachs Group Inc. increased its position in shares of Trex by 91.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 822,772 shares of the construction company’s stock valued at $47,803,000 after buying an additional 392,715 shares in the last quarter. Parallel Advisors LLC raised its stake in Trex by 28.4% during the 2nd quarter. Parallel Advisors LLC now owns 1,049 shares of the construction company’s stock worth $57,000 after buying an additional 232 shares during the period. Baader Bank Aktiengesellschaft raised its stake in Trex by 98.7% during the 2nd quarter. Baader Bank Aktiengesellschaft now owns 7,393 shares of the construction company’s stock worth $401,000 after buying an additional 3,672 shares during the period. Finally, UMB Bank n.a. lifted its holdings in Trex by 41.4% during the second quarter. UMB Bank n.a. now owns 1,168 shares of the construction company’s stock worth $64,000 after acquiring an additional 342 shares in the last quarter. Institutional investors and hedge funds own 95.96% of the company’s stock.

About Trex

Trex Company, Inc is a leading manufacturer of wood-alternative decking and railing systems designed for residential and commercial outdoor living environments. The company’s core offerings feature composite decking products made from a proprietary blend of recycled wood fibers and plastic film, which deliver enhanced durability, resistance to rot and insect damage, and low maintenance compared to traditional wood. Trex also provides matching railing, lighting, fencing and cladding solutions that allow customers to create cohesive, high-performance outdoor spaces.

Trex’s product portfolio is organized into multiple performance tiers, including premium, mid-range and value-oriented lines.